The Gold price has continued its recovery, reaching close to $2,030 as the US Dollar stabilizes. Although there is a pullback in Gold, it lacks strong conviction as traders have scaled back expectations for a Federal Reserve (Fed) rate cut in March.

The resilience in Gold is supported by heightened demand for safe-haven assets amid escalating conflicts in the Middle East. The situation in Gaza and increasing tensions between Houthi rebels and the United States military in the strategic Red Sea shipping route contribute to the appeal of Gold. Additionally, military strikes by Pakistan in Iran, following a similar incident by Iran on its territory, have added to geopolitical uncertainties.

Despite these geopolitical factors supporting Gold’s significant recovery, the short-term outlook remains cautious. Further upside potential is constrained by the diminishing expectations for a Fed interest-rate cut, as traders pare back their bets. The positive signal from upbeat US Retail Sales numbers also suggests potential upside risks to US inflation, influencing the overall dynamics of the Gold market.